Industrial units resume operations in Puducherry

May 04, 2020 09:51 pm | Updated 09:51 pm IST - PUDUCHERRY

Giving hopes of revival of economic activity in the Union Territory, standalone shops and industrial units resumed operations on Monday, after shutters were downed about 40 days ago in a nationwide lockdown to prevent the spread of novel coronavirus.

With the Centre bringing the four regions of the UT under orange and green zones, the Cabinet on Sunday decided to allow standalone shops and industrial units to resume operations without obtaining temporary permits from civic bodies. However, the government decided not to lift the restrictions on malls, restaurants, theatres and liquor shops for the time being.

The shops in the town and suburban areas resumed functioning on Monday after an initial delay due to want of clearance from the police. Industrial units in the estates and rural areas also resumed operations though with limited staff and raw material.

The biggest challenge before the government, according to a senior official, was to continue with the relaxations as there was a mounting concern about the growing number of COVID-19 cases in the neighbouring districts of Cuddalore and Villupuram in Tamil Nadu.

The heavy rush and non-adherance to personal distancing when shops opened on Monday forced Chief Minister V. Narayanasamy to issue a statement warning people of imposing restrictions once again if owners failed to adhere to norms.

According to a senior official, the government was passing through a severe financial crisis with the treasury left with only a few crores this month for payment of old age pension and grant-in aid to educational institutions.

In April, the government could only shore up 20% of GST/VAT collections. The government, on an average per month, collected around Rs.120 crore as GST/VAT, Rs. 60-70 crore as excise and around Rs.16 crore from registration of property and vehicles.

“We are going to rely only on GST collection as excise duty will be zero due to closure of liquor shops. It is very important for us to continue with the business activity by preventing any outbreak of the virus,” said the official.

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